4 factors that could have pushed bitcoin to fall to USD 6,500
According to Gabor Gurbacs, executive of VanEck, the decline has occurred as a result of geopolitical and financial factors
On November 25 the director of digital assets of the investment management giant VanEck, Gabor Gurbacs, published several causes that, in his opinion, may be the cause of bitcoin fall to USD 6,500.
Gurbacs says China would have taken strong measures against cryptocurrency exchanges that offered services to its nationals, which had increased the pressure on bitcoin by lighting an alert to investors who saw the risk and opted out of the market, hoping to return to buy at lower levels. “I think investors are worried about the news of the repression of China and, therefore, some second guess its point of re-entry and lower prices.”
Liquidity fades
According to Gabor Gurbacs, bitcoin luiquidity is going through a significant contraction with respect to trading platforms. This could be the result of current Chinese policy that has traditionally impacted the general feeling about the price of the cryptocurrency.
“The differentials of the offer are the widest in the last 3 months. Be careful out there. The market can move quickly in any direction. Be ready. Avoid large / any size market orders,” Gurbacs advised.
A fourth factor that may be added to the list is the development of products, mergers and acquisitions financed with cryptocurrencies.
K.Villarroel
Source: thebtctimes
